[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4211 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 4211

 To amend the Internal Revenue Code of 1986 to treat nonrecourse small 
       business investment company loans from the Small Business 
   Administration as amounts at risk for purposes of determining the 
                         deduction for losses.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 3, 2009

Mr. Thompson of California (for himself and Ms. Woolsey) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to treat nonrecourse small 
       business investment company loans from the Small Business 
   Administration as amounts at risk for purposes of determining the 
                         deduction for losses.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. NONRECOURSE SMALL BUSINESS INVESTMENT COMPANY LOANS FROM THE 
              SMALL BUSINESS ADMINISTRATION TREATED AS AMOUNTS AT RISK.

    (a) In General.--Subparagraph (B) of section 465(b)(6) of the 
Internal Revenue Code of 1986 is amended to read as follows:
                    ``(B) Qualified nonrecourse financing.--For 
                purposes of this paragraph--
                            ``(i) In general.--The term `qualified 
                        nonrecourse financing' means any financing--
                                    ``(I) which is qualified real 
                                property financing or qualified SBIC 
                                financing,
                                    ``(II) except to the extent 
                                provided in regulations, with respect 
                                to which no person is personally liable 
                                for repayment, and
                                    ``(III) which is not convertible 
                                debt.
                            ``(ii) Qualified real property financing.--
                        The term `qualified real property financing' 
                        means any financing which--
                                    ``(I) is borrowed by the taxpayer 
                                with respect to the activity of holding 
                                real property,
                                    ``(II) is secured by real property 
                                used in such activity, and
                                    ``(III) is borrowed by the taxpayer 
                                from a qualified person or represents a 
                                loan from any Federal, State, or local 
                                government or instrumentality thereof, 
                                or is guaranteed by any Federal, State, 
                                or local government.
                            ``(iii) Qualified sbic financing.--The term 
                        `qualified SBIC financing' means any financing 
                        which--
                                    ``(I) is borrowed by a small 
                                business investment company (within the 
                                meaning of section 301 of the Small 
                                Business Investment Act of 1958),
                                    ``(II) is secured by property used 
                                or held, directly or indirectly, by 
                                such small business investment company, 
                                and
                                    ``(III) is borrowed from, or 
                                guaranteed by, the Small Business 
                                Administration under the authority of 
                                section 303(b) of such Act.''.
    (b) Conforming Amendments.--Subparagraph (A) of section 465(b)(6) 
of such Code is amended--
            (1) by striking ``in the case of an activity of holding 
        real property,'', and
            (2) by striking ``which is secured by real property used in 
        such activity''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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